Seeking Alpha

Ares Capital (ARCC) is downgraded to Hold at JPMorgan. No details are yet available, but it's...

Ares Capital (ARCC) is downgraded to Hold at JPMorgan. No details are yet available, but it's likely a valuation call. A nice run has the shares trading 13.8% higher than the NAV (as of Sept. 30) of $15.74. There may be better values in the BDC sector.
Comments (6)
  • Near 52 week high, still pays a 9% dividend in my IRA.
    The dividend was increased from 37 cents to 43 cents last year.
    This call by JPMorgan is some analyst deciding to do something instead of nothing.
    Earnings report next month probably will render this proclamation stupid.
    Stock NAV in February might justify current price.
    Most of the Banks and Analysts usually have a hidden agenda.
    15 Jan 2013, 08:26 AM Reply Like
  • VeroMike:


    Couldn't agree more. Some of these guys wouldn't recognize a good thing if it stared them in the face. Think I'll buy more on this pull back. The Motley Fool regularly makes fun of these upgrade/downgrades. I think they really have it right.
    16 Jan 2013, 12:26 AM Reply Like
  • agree...nav in sept not the same as nav jan 13 for one
    15 Jan 2013, 08:35 AM Reply Like
  • i'm not selling......into the stock for the forseeable about a bdc etf?
    15 Jan 2013, 09:19 AM Reply Like
  • If you don't mind taking steroids, try BDCL.


    I'm not recommending it, I just stumbled on it recently.
    15 Jan 2013, 12:52 PM Reply Like
  • Most downgrades involving stocks that have behaved like ARCC, are a result of analysts wanting to recommend the stock but are afraid of valuation due to the runup. Accordingly, they hope to "knock" down the value a few clicks to then change their recommendation to a "buy". Sometimes it actually works. Most times it doesn't, but if the stock gets hit a little, add to it.
    15 Jan 2013, 09:25 AM Reply Like
DJIA (DIA) S&P 500 (SPY)